34: How to Pick Stocks to Invest in (Part 3: Financial Security)

<p>🎙 In part 3 of this series, we’re looking at how to determine whether a company is solvent and liquid — meaning whether it can pay it’s bills and isn’t secretly broke. Knowing the difference will give you peace of mind that your money is invested in a safe company. But how can you determine the financial security of potential investment options? 🤔</p> <p><strong>This episode discusses topics like:</strong></p> <p>🌟 What solvent and liquid mean when you’re looking for a company to invest in;</p> <p>🌟 How to determine whether or not a company can pay its’ bills and its’ debts; and</p> <p>🌟 Why it’s important to assess the financial health of a company before you decide to invest in them.</p> <p><strong>Links from this episode:</strong></p> <p>Episode transcript and show notes: <a href= "https://www.papermoneyco.com/gof34">https://www.papermoneyco.com/gof34</a></p> <p>Get your FREE Investing Starter Guide: <a href= "https://www.papermoneyco.com/startinvesting">https://www.papermoneyco.com/startinvesting</a></p> <p>How to pick stocks to invest in (Part 1: Understanding financial statements): <a href= "https://www.papermoneyco.com/gof32">https://www.papermoneyco.com/gof32</a></p> <p>How to pick stocks to invest in (Part 2: Profitability and valuation): <a href= "https://www.papermoneyco.com/gof33">https://www.papermoneyco.com/gof33</a></p> <p>How to invest in ETFs: <a href= "https://www.papermoneyco.com/gof17">https://www.papermoneyco.com/gof17</a></p> <p><strong>Time codes:</strong></p> <p>00:00 Hello and Welcome!</p> <p>02:32 Why Solvency and Liquidity Matter</p> <p>05:54 Solvency Ratios</p> <p>09:47 Sponsor - FIRE and Investment Calculator Spreadsheet</p> <p>11:45 Liquidity Ratios</p> <p>14:16 Next Weeks’ Episode</p> <p><strong>Remember to:</strong></p> <p>Join our exclusive community by becoming a Patron: <a href= "https://www.patreon.com/girlonfirepodcast">https://www.patreon.com/girlonfirepodcast</a></p> <p>🤩 Subscribe so you don’t miss any future episodes.</p> <p>🏆 Rate and review the show on Apple Podcasts: